Economic idea according to which people`s individual decisions and how that influences the market should be examined by economists. Carl Menger for instance, maintained that economy is still a social science and aims to classify people`s actions into logical framework and set of patterns.Mengers`s succesor, Noble Prize-winning Austrian Friedrich Hayek, observed, everyone is different and as such-although they may be treated in precisely the same way-the way they react to that treatment may differ greatly.so the only way to ensure they are equal would be to treat them differently.
Austrian economists emphasize the importance of freeing up the indywidual to take her or his choices. This austrian laissez-faire influenced some of the biggest reform in 20th-century economics, for it was, at least partially, the ideas of the Austrian School that inspired both Ronald Reagan and Margaret Tchtcher to push forward their free-market reforms. They recognized that the focus should not be on top-down economics, but indywiduals wants and desires
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